Consolidation of West Coast business is expected to save the firm $3.3 million annually.
Caliper Life Sciences is consolidating its West Coast operations to reduce facility costs and improve R&D spending. The plan cuts 13 positions and moves 33 employees to a different location.
While Caliper expects to save $3.3 million annually, it will take an overall hit of up to $3.75 million this year. The company will incur a first quarter severance and retention charge of between $500,000 to $650,000. Additionally, Caliper will pay approximately $400,000 in employee severance and retention costs over the remainder of the fiscal year, and about $2.7 million in facility-abandonment charges in the third quarter.
Caliper also estimates that ongoing facility cash out-flows, primarily rent payments net of sublease income, will be spread over the 5.6 years remaining on its Mountain View, CA, lease. The firm will move roughly 33 employees, who are mainly involved in R&D work from this facility to its Alameda, CA, branch.
Caliper expects to report total revenue above the mid-point of its previous projected range of $26.5 million to $29.5 million.
